Financial planning Tips to achieve your financial goals in 2019

Money is one of the most important elements of anyone’s life. A stress on financial front can be highly stressful and even devastating at times. So one needs to plan well to be able to have a sound financial life. And as the year comes close to end and the year 2019 is about to dawn, following is the list of tips that one must follow for meeting financial objectives.

Create and follow a budget plan

While it cannot be counted as a tip since it is no hidden fact, but most of the individuals flounder on this very basic and most important requirement. The new year resolve does set in budgeting exercise, but following it is something that has to be enforced, anyhow, over the following 12 months. Any exception to this would derail achievement of the objective.

Get out of debt

To be able to achieve your loan term goals, like building a corpus for retirement, saving for child’s education or marriage etc will need you to be completely out of debt. The interest being paid on the debt is what you could save and over a period it would add to the corpus. The multiplicative factor on the savings over years help in building a larger pool of money and help in creating wealth. The objective has to be pay off as much debt as possible if not complete amount is being paid off.

Avoid over usage of credit cards

This is one thing that one and all must bear in mind. Cards are a great product but should only be used to the extent where one can pay off in one go. While budgeting you must also set a limit on the amount that can be spent on the cards and do not go beyond it in any case. Repayment of cards since flexible, one should not pay in parts. Also set an auto payment from your account to avoid any delays in payment. Not only does the delays and over usage lead to high cost of credit but have the potential to severely impact the credit profile and thus you looking out for a personal loan without CIBIL score if the need arise.

Automate your savings/ investments

A part of your income must get into the saving instruments. Set up an instruction to invest into any product of your comfort which could range from a recurring deposit to market instruments. But do this on the day your money comes in to avoid any lapses.

Build an emergency fund

Set aside a small portion every month towards an emergency fund and let it grow over the period. Ideally you must have an equivalent to your 6 month’s income set aside to fall back upon. This will help you tread the tough times and not falling back on expensive credit options like credit cards.

Keep an eye on the expenses

You should ideally be able to live on lesser money than you earn. Only if you are able to achieve this will you be able to have your earned money contribute towards your long term objectives. And to be able to do this, you are required to keep a very close watch on the expenses. It is suggested that you must list down expenses on a daily basis and see if these have been on a requirement or there has been an impulse in making that expense. There are quite a few applications that help you keep a track on this. It may be a good idea to subscribe to such an app since these given break up on areas where you would have spent the money.

Improve your credit score

This again is of high importance. While your endeavor has to be to have a debt free life, but loans are an integral part of our financial life today and one may need access to credit to be able to achieve financial objectives. Do check your free CIBIL score regularly and take corrective action if required.